Help needed to use Credit Card

chocky909

I just got my Tesco Credit Card and I want to make a purchase of £3150 but the vendor won't take Credit Card payments, only BACS, cheque or Debit card. I obviously want to take advantage of the 15 months interest free on purchases so what I need to know is what is the best way to make this purchase?

dzug1

If the vendor won't take the card then there isn't one. If you get a cash advance/transfer to your bank (assuming it's possible) that won't count as a purchase and you'll get charged fees/interest.

chocky909

OK. I've never had a credit card before so these problems are new to me. Sounds like I'm stuck then. So why wouldn't the vendor take the credit card as payment? Too much in fees?

I have a PIN but I assume if I use that it will be treated as a cash advance and will not be interest free?

Ben8282

You say you just got your Tesco Credit Card and you want to make a purchase of £3150 and you also say you've never had a credit card before so these problems are new to you.

You are VERY lucky, as a person who has NEVER had a credit card before, to be accepted for a 15 month Tesco 0% purchase card with a credit limit high enough to make this purchase.

You will have to ask the vendor why he will not take the credit card. If he can accept debit cards he should be able to accept credit cards so maybe it is fee related. The vendor may accept the card if you pay his costs.

If you use your PIN to withdraw cash in an ATM then it will be treated as a cash advance. If you use the PIN in a chip and pin termnal when making a purchase then it will be treated as a purchase.

Your best solution may be to make your purchase from a different shop.

chocky909

Interesting. I have used credit before via an Argos Card which I suppose is a credit card in a way and a couple of Buy Now Pay Later loans.

I've sorted it with the vendor anyway. I'm going to pay the 2% transaction fee (£63) myself so all in all that's not too bad considering the 0% interest compared to the 10% loans I was considering. This has all been a bit of a crash course for someone who is very uncomfortable in the heady world of credit and finance. Thanks for the advice anyway guys.

InsideInsurance

chocky909 wrote: »

So why wouldn't the vendor take the credit card as payment? Too much in fees?

For debit cards a flat fee is charged per transaction (normally 3p-50p depending on the size of the company)

For credit cards a flat fee plus a percentage of the transaction is charged which can be anything from 3p+1.5% to 50p+5% (again depending on the nature of the vendor)

Most companies build in the transaction fees to their pricing so everyone pays the same, others will add a credit card fee and a few will refuse to accept credit cards because of the fee.

Tixy

For future reference (or for anyone else in a similar situation) - one other alternative as its a tesco credit card you could have used it to buy sterling travellers cheques from tesco. These are treated as a purchase by Tesco so qualify for your 0% promo, they are subject just to a 1% fee.

You can then pay the travellers cheques into your current account - and then use the funds to make any purchase in cash or debit card. If anyone is choosing this option they might want to check with their current account provider whether they charge for you depositing travellers cheques.

shiny76

Tixy wrote: »

If anyone is choosing this option they might want to check with their current account provider whether they charge for you depositing travellers cheques.

Alternatively, sit on them for a week or two. Then return them to a Tesco store with a Travel Money kiosk and exchange them for cash. It's a bit of a faff but seemed easier than convincing Halifax (again) that it was OK to accept them

kjharve

I'd be very wary of making a purchase of this size from a retailer who doesn't accept credit cards!

Tixy

shiny76 wrote: »

Alternatively, sit on them for a week or two. Then return them to a Tesco store with a Travel Money kiosk and exchange them for cash. It's a bit of a faff but seemed easier than convincing Halifax (again) that it was OK to accept them

Aha - does that work? they don't insist on refunding them to the credit card? Good work.

InsideInsurance

Tixy wrote: »

they don't insist on refunding them to the credit card?

Its not a refund, you are simply cashing in the cheques